RLI Earnings 22% Higher Than Year Earlier

Peoria, Ill.-based RLI Corp. posted quarterly net earnings of $15.4 million (60 cents per diluted share), a 22 percent per-share improvement over the $10.0 million (49 cents per diluted share) posted in the second quarter last year.

Both the total dollar and per-share amounts set RLI records. Quarterly operating earnings of $14.1 million (55 cents per share) were up 20 percent per share from last year’s $9.3 million (46 cents per share) result, and matched the operating earnings per share record set last quarter. Book value per share finished the quarter at $20.36, up 10 percent since year end.

Through six months, RLI net earnings were $29.8 million ($1.16 per share), versus last year’s $19.1 million (93 cents per share) posting, a 25 percent per-share gain. Operating earnings of $28.3 million ($1.10 per share) were 31 percent better per share than the $17.2 million (84 cents per share) result reported at this time last year.

These results set mid-year records.

RLI net operating earnings consist of net earnings after the elimination of after-tax realized investment gains/losses. This measure is useful in gauging core operating performance across reporting periods, but may not be comparable to other companies’ definitions of operating earnings.

RLI’s quarterly underwriting profits were $7.4 million on a 93.4 net GAAP combined ratio. This result compares to a $2.6 million gain on a 96.8 combined ratio for the same period last year. The company’s property segment drove these results, as it posted a 71.5 combined ratio for the second quarter, an outstanding figure in light of seasonal weather-related claims. The casualty segment continued to record underwriting profits with a 98.5 combined ratio. Surety results stayed level for the quarter, reflected in its combined ratio of 112.